Apple Analyst Gene Munster Projected That The Company Could Spend $4.2 Billion On Original Content By 2022

It’s reported that Apple plans to invest $1 billion in 2018 to purchase and produce original content, one billion dollars in our eyes, of course, is huge amount of money, but to view from the original content market is far from enough (HBO, which made numbers of high profile episodes last year, spent as much as $ 2 billion for original programming).

However, according to a projection from Loup Ventures analyst Gene Munster, Apple will ramp its original content spend to $4.2 billion by 2022 as part of an effort to expand the rebranded Apple Music. The longtime Apple watcher also sees the increase as an effort to compete with incumbent subscription VOD giants.

While Variety commented, saying that even if Apple's investment reached $4.2 billion, but this figure still won’t catch up the other two video giants. By 2022, Amazon's investment will be likely to exceed Netflix’s $6.8 billion, reaching $8.3 billion, or about twice of the amount invested by Apple.

We think that will change over the next 5 years as Apple ramps its original content investment from about $500m in 2017 to our estimate of $4.2B in 2022. It’s worth noting this will still lag our 2022 estimates for original content spend (excludes catalog spend) by Amazon at $8.3B which will likely surpass Netflix at $6.8B.

The analyst envisions Apple rebranding Apple Music in the next 2-3 years to reflect a scope larger than just songs. “Apple should be able to quickly expand their sub base given they have a running start with just over 30 million Apple Music subs that will have access to the video offering for the same $10 per month,” he wrote in a Nov. 21 research note.

We have also seen that Apple is willing to make some changes in the original contents. The company announced in early November they are making a new TV show for its streaming service starring Jennifer Aniston and Reese Witherspoon. They also hired Morgan Wandell, former Amazon Studio executive and Matt Cherniss, former President and General Manager of WGN America, to join the team.

Via Variety, Image Credit 9to5Mac And Loup Ventures

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